Loan 80–90% purchase + up to 100% rehab, capped 65–75% ARV · Rate ~8–14% + 1–3 pts · Term 6–18 mo IO · Close 5–14 days · Credit 620+ · No tax returns · Exit sell or refi-to-DSCR. Detail on Requirements & Rates.
The basics
What is a fix and flip loan?
A short-term, business-purpose loan that finances buying and renovating an investment property to resell — bundling purchase + rehab, with rehab released via draws and the loan sized off the after-repair value.
How is it different from regular hard money?
It's hard money tuned for buy-renovate-sell — adds a rehab draw schedule and ARV-based sizing.
Who uses them?
First-time and experienced flippers, BRRRR investors, and builders adding rehab projects.
Is it a business-purpose loan?
Yes — non-owner-occupied investment property only, so it's exempt from consumer income-doc rules.
What's the typical term?
6–18 months (12 typical), interest-only, with the balance repaid at sale or refinance.
Money, LTC & ARV
How does ARV lending work?
You borrow off the after-repair value, not today's price — the total loan is capped at ~65–75% of ARV.
How much can I borrow?
80–90% of purchase + up to 100% of rehab, capped at 65–75% ARV. Lender funds the lesser of the two.
What are 2026 rates?
~8–14% + 1–3 points; experienced 9.5–11.5%, first-timers higher. Rates →
What's the 70% rule?
Max purchase = ARV × 0.70 − rehab. Preserves ~30% margin. Run it →
Can I flip with zero down?
Only by cross-collateralizing equity from another property to cover the gap. Reputable lenders rarely do true zero-down.
Do I still need cash?
Yes — down payment, points/closing costs, and reserves to carry the project.
Draws & interest
How does the draw schedule work?
Rehab funds release in stages as work is completed and verified — usually reimbursement draws (pay, submit receipts, get reimbursed).
Dutch vs non-Dutch interest?
Dutch = interest on the full loan (incl. undrawn rehab) from day 1; non-Dutch = only on disbursed funds. Ask which you're quoted.
Do I pay interest on undrawn rehab?
Under non-Dutch, no. Under Dutch, yes — which raises your carry. It's a real cost difference.
How fast are draws funded?
Often within a day or two of inspection — fast draws keep contractors paid and the project moving.
Who inspects the work?
The lender verifies each milestone (inspection or photos) before releasing the next draw.
Qualifying & exit
Can first-timers qualify?
Yes — with a strong deal, reserves, ~620+ credit, and a contractor scope of work. Start cosmetic. Eligibility →
Do I need income verification?
Usually none — asset-based, no tax returns or DTI.
How fast can it close?
5–14 days; faster for repeat borrowers.
What's my exit?
Sell the finished home, or refinance into a DSCR loan to hold as a rental (BRRRR).
Can I keep it as a rental?
Yes — refinance out of the flip loan into a DSCR loan; some hybrid products transition without a second closing.
What if the project runs long?
Extensions exist but add cost; budget a conservative timeline and 15–20% contingency up front.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.